Prime Minister’s Employment Generation Programme|PMEGP Scheme UPSC
Ministry of MSME, Government of India warns unscrupulous elements against cheating people in the name of Prime Minister’s Employment Generation Programme (PMEGP) Scheme
WHY IN NEWS:
Ministry says entire process of application and fund release under PMEGP is online and free of cost
SYLLABUS COVERED: GS 3: Schemes
For PRELIMS it is important to understand the objective of this scheme . Keep a note on beneficiaries and interest rates .
For MAINS keep an eye on the controversies revolving around the scheme . Let us dive in !
PRIME MINISTER’S EMPLOYMENT GENERATION PROGRAMME (PMEGP) SCHEME
- The scheme is to assist first generation entrepreneurs for setting up of micro enterprises across the country.
- The Prime Minister Employment Generation Programme (PMEGP) is a Government of India-backed credit linked subsidy scheme.
- As an entrepreneur, PMEGP can give you the financial assistance required to set up a new project.
PMEGP Scheme UPSC
- To produce employment opportunities in both urban and rural areas in India through the establishment of new self-employment projects, micro-enterprises and ventures.
- To facilitate self-employment opportunities for widely dispersed traditional artisans/ unemployed rural and urban youth to the degree feasible, at their location.
- The initiative will thereby halt rural youth from migrating to urban areas.
- To boost artisan’s income-earning capacity and spur the growth rate of both rural as well as urban employment.
- NATIONAL LEVEL : The scheme is implemented by Khadi and Village Industries Commission (KVIC).
- STATE LEVEL : The scheme is implemented through State KVIC Directorates, State Khadi and Village Industries Boards (KVIBs)
- DISTRICT LEVEL : District Industries Centres (DICs) and banks.
- Prime Minister’s Employment Generation Programme (PMEGP) is a central sector credit linked subsidy scheme being implemented by the Ministry of MSME since 2008-09.
- The balance amount of the total project cost will be provided by the banks in the form of term loan and working capital.
SOURCES : PAISABAZAAR.COM | PMEGP Scheme UPSC
- Any individual, above 18 years of age.
- At least VIII standard pass for projects costing above Rs.10 lakh in the manufacturing sector and above Rs. 5 lakh in the business / service sector.
- Self Help Groups registered under Societies Registration Act,1860; Production Co-operative Societies, and Charitable Trusts are also eligible.
- Existing Units and the units that have already availed Government Subsidy under any other scheme of Government of India or State Government are NOT eligible.
- Banks sanction funding up to 90% to 95% of the project cost.
- On this, the government provides 15% to 35% as margin money or PMEGP subsidy.
- The remaining 60% to 75% is provided by the bank as a term loan.
- Repayment tenor is 3 to 7 years after a preliminary moratorium.
SOURCES : BAJAJFINSERV.IN | PMEGP Scheme UPSC
- Potential entrepreneurs / beneficiaries are being approached by private persons or agencies offering loans under PMEGP Scheme.
- Ministry has warned the unscrupulous elements against cheating general public in its name.
- The entire process of application and fund flow right from receipt of application to sanction and release of loan by banks to the applicants has been made online .
- The entire process is through only one Government portal run by Khadi and Village Industries Commission.
- The portal can be accessed at link below . The whole process is totally free of cost.
SOURCES: PIB | PMEGP Scheme UPSC